Mixed results for Australian-listed explorers

The final quarter of 2024 delivered mixed news for Australian-listed explorers. While funding surged to $2.88 billion - an increase of 48 per cent from the previous quarter - overall exploration spending plateaued at $792 million, BDO’s latest Explorers Quarterly Cash Update has revealed.

BDO’s Global Leader of Natural Resources & Energy, Sherif Andrawes, said the mixed result was punctuated by the continued dominance of gold exploration, spurred by high gold prices, while other sectors, particularly lithium and nickel, faced ongoing challenges.

"The high gold price has been a significant driver for the increased funding in the sector. Gold explorers have thrived, benefiting from the global deflationary fiscal policy and political uncertainty," he said.

“In contrast, exploration activity in the lithium and nickel sectors continued to decline as falling commodity prices dampened investment.

“Total exploration expenditure for the quarter remained flat compared to the previous quarter, reflecting a sharp drop from the high-spending levels seen in 2023, when explorers spent an average of $933 million per quarter.”

At the same time, the energy sector showed a different trend. Oil, gas, and uranium explorers accounted for four of the five top exploration spenders this quarter.

"This reflects shifting global energy dynamics, driven by geopolitical tensions and the ongoing focus on energy transition initiatives," said Sherif

Meanwhile, IPO activity continued its slowdown, as investor appetite for smaller, high-risk exploration companies remaining subdued.

Despite the slowdown, Sherif said opportunities for high-quality assets, especially in gold and copper-rich mining jurisdictions, persist.

“Looking ahead, gold explorers are expected to remain the most active investors in 2025,” he said.

“However, ongoing challenges, such as inflationary pressures, selective access to capital, and geopolitical instability, will continue to shape the sector, driving consolidation and strategic investments aimed at production growth.”

For media enquiries:
Tate Papworth 
Manager, Media 
E: Tate.Papworth@bdo.com.au 
Ph: 0433 411 189